DIRECTIVE (EU) 2017/828 AMENDING DIRECTIVE 2007/36/EC AS REGARDS THE ENCOURAGEMENT OF LONG-TERM SHAREHOLDER ENGAGEMENT AND ITS IMPLEMENTATION IN CROATIAN COMPANY LAW

Abstract

In April 2019 the Croatian Companies Act was amended and harmonized with provisions of the Directive (EU) 2017/828 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement. These amendments introduce new regulatory requirements for listed companies with aim to encourage shareholders to exercise their rights on general meetings, especially when their shares are held by intermediaries. Institutional investors, asset managers and proxy advisors must publicly disclose information about their investment strategies, their engagement policy and the implementation thereof. Shareholders are included in establishment of the remuneration policy for directors of listed companies and adoption of the annual remuneration report. Related party transactions must be approved by the administrative or supervisory body of the listed company and they must be publicly announced on the website of the company.